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Rule XVIII
Administrative Sanctions

SECTION 1. Foreign Investments in Export Enterprises - Non-compliance by any duly-registered export enterprise with Rule VI, Sections 3 and 4 above shall be subject to the following sanctions:

a. For late submission of the required annual report -

1st violation - written warning       2nd violation -   basic fine of P1,000.00 and a daily fine of P50.00       3rd violation - basic fine of P2,000.00 and a daily fine of P100.00

Subsequent violations - basic fine of P5,000.00

b. For the submission of fraudulent reports -

Partnership/ Corporation FINE  Sole Proprietor

    Partnership/
Corporation  

FINE Sole
Proprietorship

         

  1st violation   P100,000.00  

P50,000.00

  2nd violation   150,000.00  

70,000.00

  3rd violation   fine in an amount not exceeding 1/2 of 1% of total paid-in capital but not more than Five Million Pesos  

100,000.00

 

Subsequent violations: Cancellation of registration granted under the Act

The President and/or official/personnel of the partnership/corporation responsible for the submission of fraudulent reports shall be subject to the following sanctions:

1st violation   a fine of P50,000.00

2nd violation  a fine of P100,000.00

3rd violation  a fine of P200,000.00

c. For non-submission of the required reports within twelve (12) months after the taxable year, cancellation of the certificate of registration granted under the Act.

d. For failure of any duly-registered export enterprise to comply, without justifiable reason, with the SEC or BTRCP order to increase, its export to at least sixty percent (60%) of total sales

    Partnership/
Corporation  

FINE Sole
Proprietorship

              1st violation   P100,000.00  

P50,000.00

         

  2nd violation   150,000.00  

70,000.00

         

  3rd violation   fine in an amount not exceeding 1/2 of 1% of total paid-in capital but not more than Five Million Pesos  

100,000.00

         

  4th violation   Cancellation of registration granted under the Act  

 

The President and/or official of the partnership/corporation responsible in the failure to comply with the said SEC or BTRCP order shall be subject to the following sanctions:

1st violation   a fine of P50,000.00

2nd violation  a fine of P100,000.00

3rd violation  a fine of P200,000.00

SECTION 2. Compliance with Environmental Standards - Any industrial enterprise, regardless of nationality of ownership which fails to comply with existing rules and regulations to protect and conserve the environment and meet applicable environmental standards shall be subject to the sanctions as may be provided for in the rules and regulations of the DENR.

SECTION 3. Hearing of Violations of the Act - The SEC or BTRCP shall adopt their respective rules and regulations for the purpose of conducting hearings and investigations involving violations of the provisions of the Act and these Implementing Rules and Regulations.

SECTION 4. Other Grounds For Cancellation - The following are other grounds for the cancellation of the certificate of registration under the Act:

a. Failure of a non-Philippine national intending to engage in the same line of business as an existing joint venture, in which he or his majority shareholder is a substantial partner, to disclose such fact and the names and addresses of the partners in the existing joint venture in his application for registration with the SEC; or

b. Commission of any other fraudulent act.

SECTION 5. Other Violations - Any other violations of the Act and these implementing Rules and Regulations shall be penalized in accordance with Section 14 of the Act.

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Adopted: 24 Oct. 1991